ESAF Small Finance Bank Records 145% Surge In Q2 Net Profit, Reaching Rs 140 Cr

ESAF Small Finance Bank posted a net profit of Rs 140 crore for the July-September FY24 quarter, registering a remarkable 145 per cent surge compared to the Rs 57 crore recorded in the same period the previous year. The bank's asset quality exhibited positive trends, with gross non-performing assets (GNPA) at 2.64 percent, a significant improvement from the 8.11 percent reported in the corresponding quarter of the previous year. Furthermore, the net non-performing assets (NPA) saw a notable reduction to 1.19 per cent, down from 4.34 per cent.

The bank's robust performance extended to its net interest margin (NIM), which stood at an impressive 11.98 per cent. ESAF Small Finance Bank's extensive distribution network encompassed 700 branches, 579 ATMs, 25 business correspondents, and 855 customer service centers, strategically located across 236 districts in 21 states and 2 union territories as of 30 September 2023.

In terms of market activity, ESAF Small Finance Bank's stock made a strong debut, opening at a 19 per cent premium to the IPO price on 10 November. The stock commenced trading at Rs 71 on the NSE and Rs 71.9 on the BSE, surpassing the issue price of Rs 60. Prior to listing, the shares were trading with a 26 per cent premium in the grey market, an unofficial trading platform that operates before IPO allotment and continues until the listing day. Investors often track the grey market premium (GMP) to gauge the expected listing price.